HMRC trying to prevent carousel fraud and cut costs
Accountancy Age, 22 Aug 2007
Businesses are facing delays in getting registered for VAT because of a new attempt by HM Revenue & Customs to stop carousel fraud and because of a drive to cut costs, The Independent reported.
According to the paper, the average time taken to process VAT registration applications is now 38 days, way off HMRC's 14-day target.
According to accountants Blick Rothenberg some businesses 'in extreme cases' have had to wait up to six months to be registered for VAT.
'This is seriously affecting the cash flow of many small to medium-sized businesses, with what should take a couple of weeks now taking up to 30,' the firm said.
HMRC has not set a deadline for hitting the 14-day target.
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